According to last year’s third and fourth quarter results, the Eurozone is facing a decline in gross domestic product (GDP). The newspaper reports this with reference to the PMI business activity index. “Kommersant” (“Kommersant”).
In December, the PMI value was well below the 50 point threshold. Experts think Europe may experience a technical recession. It looks like the euro zone’s GDP will fall. However, analysts believe that the expected recession will be shallow. Thus, the economic sentiment indicator (ESI) has been growing for the third month in a row. The European Commission reported an increase in consumer and management confidence in the services, retail and construction sectors.
At the same time, no improvement is expected in the manufacturing sector; Forecasts for the volume of export orders have only worsened. This situation in the industry is explained by the increasing delayed effects of the tight monetary policy followed by the European Central Bank.
Previous experts statedWe see that the European Union economy has entered stagnation and recession.
Formerly Central Bank of the Russian Federation raised key rate up to 16%.